Grenfell Tower cladding maker Arconic stops selling non fire-resistant version

The company that supplied the cladding used on London'sGrenfellTower says it will stop selling the type of panels thatwere used on the building where at least 79 people perished in a devastating fire earlier this month.

Arconic, spun outof aluminum firmAlcoalast year, says it will halt sales ofReynobondPE, the type ofcladding that was used on the24-storeybuilding in West London that caught fire on June 14.

• Q & A Why Grenfell became a raging fire

Preliminary indications are that the cladding may have been a factor in spreading the blaze.Arconicmakes a fire resistant brand of cladding calledReynobondFR, as well as a completely non-combustible version, but they weren't used on a recent retrofit ofGrenfellTower.

ReynobondPE consists of two aluminum composite panels that are filled with insulation that can often include polyethylene plastic. If improperly installed, it can be flammable, which is why the U.S., Germany and several other countries have banned its use on high-rise buildings.

"We believe this is the right decision because of the inconsistency of building codes across the world and issues that have arisen in the wake of theGrenfellTower,"Arconicsaid in a statement. "We will continue to fully support the authorities as they investigate this."

• Fire testing urged for all building panels in U.K.

The company likely faces years of expensive litigationrelated to the disaster, although the extent of the company`s role if any in the fire is not clear.Arconicshares lost more than 10 per cent on Monday after news of the sales halt came out.

Thecompany advises customers in a brochurethatReynobondPEshould not be used on buildings taller than 10 metres, andGrenfellTower is 60 metres tall.

"When conceiving a building, it is crucial to choose the adapted products in order to avoid the fire to spread to the whole building. Especially when it comes to facades and roofs, the fire can spread extremely rapidly," the brochure says. "As soon as the building is higher than the firefighters' ladders, it has to be conceived with an incombustible material."

Reuters reported this week that a series ofemailssent to and by anArconicmanager suggested it knew thepanelswould be used onGrenfellTower.

"We sold our products with the expectation that they would be used in compliance with the various and different local building codes and regulations," Arconic said in a statement.

"The issue is they supplied material that was used above their own marketing material's suggested limit," said Seaport Global Securities analyst Josh Sullivan.

"The concern is around the ultimate liability. You have one of the largest fires in UK history and they're searching for somebody to be at fault."

• Britain has already found 34 buildings with unsafe panels installed

The U.K. government is scrambling to test panels similar to those used at the destroyed tower, hoping to better understand the national fire safety implications.

Arconic'sannouncement came as Britain's government announced that 75 buildings had failed cladding combustibility tests in 26 local authority areas. Communities and Local Government SecretarySajidJavidsaid every building tested so far had failed.

"The fact that all samples so far have failed underlines the value of the testing program and the vital importance of submitting samples urgently,"Javidsaid. "I am concerned about the speed at which samples are being submitted."